Scotland is set to introduce a Digital Assets Bill in its 2025/26 legislative program, aiming to clarify laws on crypto currencies and NFTs. This move, announced in the First Minister’s Programme for Government on May 6, 2025, addresses long-standing gaps in digital property rights and boosts fintech growth amid rising cyber threats.
Background on Scotland’s Digital Assets Push
Scotland’s government has recognized the need for clear rules on digital assets for years. Back in 2019, an Expert Reference Group led by Lord Hodge started reviewing how Scots law handles items like crypto currencies and non-fungible tokens.
A public consultation ran from November 2024 to February 2025, gathering views on reforming digital asset laws. The group recommended a standalone bill to provide legal certainty, encourage investment, and align with global standards.
This comes as property law in Scotland differs from England and Wales, where a similar bill is already moving through Parliament. Without clear rules, owners face risks in cases of theft or insolvency.
Experts say this bill could strengthen Scotland’s position as a secure hub for digital business. It follows a surge in crypto adoption, with global market value hitting over $2 trillion in 2025, per recent industry reports.
Key Goals of the Proposed Bill
The bill aims to treat certain digital assets as personal property under Scots law. This would offer owners better protection and remedies, similar to physical items.
It seeks to foster fintech innovation by reducing uncertainty in lending and financing. Regulatory consistency is another focus, helping businesses navigate rules across the UK and Europe.
- Provide legal certainty for investors and users.
- Enhance recovery rights in theft or bankruptcy cases.
- Support growth in Scotland’s digital economy.
Supporters argue it’s essential, especially after English courts recognized crypto as property in a 2019 case, leaving Scotland behind. No major Scottish court has tested this yet.
Recent events, like the 2025 global crypto hack wave affecting millions, highlight the urgency. Scotland’s bill could set a model for other regions facing similar challenges.
The legislation ties into broader UK efforts, including the Cyber Security and Resilience Bill updated in 2025, which extends protections to small businesses.
Data Breach Claims and Damages in Focus
Data protection remains a hot topic in Scotland, with more claims for non-material damages under UK GDPR. People can seek compensation for distress from breaches, as outlined in the Data Protection Act 2018.
Claimants must prove a breach occurred, they suffered harm like anxiety, and there’s a direct link. Courts are seeing a rise in such cases, but success isn’t guaranteed.
A recent German court referred a key question to the EU’s Court of Justice: Does short-term loss of data control count as non-material damage? This could influence Scottish rulings.
In Scotland, laws haven’t fully defined what qualifies as loss or how to value it. This leaves room for debate in ongoing cases.
| Aspect | Current Challenge | Potential Impact of Bill |
|---|---|---|
| Breach Proof | Hard to link to harm | Clearer guidelines for claims |
| Damage Types | Anxiety, distress | Broader recognition of non-material harm |
| Valuation | No standard method | Possible EU-wide standards post-ruling |
These developments come amid a 20% rise in UK data breaches in 2025, per official stats, pushing for stronger protections.
Recent Court Case on Data Access Requests
A notable case this year involved Kenneth Prentice suing the Chief Constable of Police Scotland. Prentice claimed the police failed to properly respond to his data subject access request, seeking a court declaration and £5,000 in damages.
The court dismissed the declaration request, saying it didn’t establish a clear right. Claims for distress and financial loss lacked enough detail to proceed.
However, the judge allowed the case to move to a full hearing on ordering compliance with the request. This highlights common issues in handling such requests under data laws.
It underscores the need for better processes, as mishandled requests can lead to stress and legal costs. Similar cases have popped up across the UK, with a 15% increase in complaints to data watchdogs in 2025.
This ruling ties into wider cyber resilience efforts, like Scotland’s ongoing policy to build a secure digital environment for work and business.
Broader Cyber Resilience Efforts in Scotland
Scotland’s government continues to prioritize cyber resilience through various initiatives. Policies aim to make the region a safe place for digital activities, including education and business support.
Recent updates include partnerships to develop an Ecosystem Restoration Code, though not directly cyber-related, it shows a holistic approach to digital and environmental data.
The UK-wide Cyber Security and Resilience Bill, effective from 2025, urges small firms to strengthen defenses. Scotland is aligning its strategies, with bulletins and weeks dedicated to cyber awareness.
For instance, CyberScotland Week 2025 focused on teaching kids about online safety and protecting against scams. This builds on a 2024 bulletin warning about Black Friday threats.
With cyber attacks up 25% globally in 2025, these steps are vital. Scotland’s efforts could inspire other nations facing similar digital risks.
What This Means for Businesses and Individuals
The proposed bill and ongoing data cases signal a shift toward stronger digital protections in Scotland. Businesses in fintech and beyond stand to gain from clearer rules, potentially attracting more investment.
Individuals benefit from better data rights, making it easier to challenge breaches and access personal information. However, challenges remain in proving damages and ensuring compliance.
Experts predict the bill could pass by late 2026, aligning Scotland with EU and UK standards. This comes as digital assets grow, with NFT sales topping $1 billion in the first half of 2025.
Staying informed is key. Share this article if you found it helpful, and comment below on how these changes might affect you or your business.
